hate the wait..decisions about my retirement

indahood

I'm struggling with wanting to know the outcome of this mess we call cancer. Trying to make decisions about my retirement. Before my diagnosis, I had already decided to take early retirement payout and walk away from the stress of being a teacher. Then I got the diagnosis. Having all the benefits of being employed while going through the treatment has been great (100% pay for 3 months then to 75% indefinitely depending on my ability to come back to work or not) and is hard to walk away from.

But for complicated payout rule regulation, I have to make my decision by my 55th birthday, Feb 21. My treatment will not be terminated yet by then. Making a life altering decision with cancer is so difficult. I hate the not knowing.

ElaineTherese

Hi indahood!

I am not familiar with your diagnosis or treatment plan. I (personally) plan to work until I'm 65. It sounds like you were ready to retire even before the diagnosis, so there's that.

Until I'm 65, I would rather have the safety and security of employer-provided health insurance. Although I've done all I can, treatment-wise, to prevent recurrence, that may very well happen. Yes, I could get on my husband's health insurance, but he's 9 years older than me and will retire before me. I just don't think that I can count on buying affordable health insurance in the independent marketplace as someone with a preexisting condition. (Yes, Obamacare lives, but I don't feel I can count on that.)

Shellsatthebeach

Hi indahood,

Is the 75% indefinitely part of disability insurance or based on your retirement? Also, you were thinking about retirement before your diagnosis, did you change your mind because of the cancer? I think I would be the opposite. I thought I wouldn't want to retire until my mid 60s (and they will probably force me out), but with cancer, I am re-thinking and would like to enjoy some kind of retirement. I may do it 5 years earlier, but based on how my retirement works, I will lose a ton of money. Do you mind me asking what state you work in?

indahood

Yes all of your points are true and thanks for your input. I think I just need to voice some of my frustration.

I am Canadian, Shellsatthebeach and have free health insurance without needing extra however, I was hoping to quit my cushy but extremely stressful teaching job. If I don't quit, while in treatment, I can collect 75% of my salary using my work disability until I am truly better, then retire with about $1000 a month pension for the rest of my life. ( that doesn't cover even half of my housing costs at the moment) One great thing for me is that any way I chose I will not have to buy extra private Health Insurance and be able to keep going on my teachers insurance that I have paid into all these years, but that won't include my disability salary that I receive now while I'm officially working.

Being single I only have my own income. The retire early plan was to take a lump sum payment of 500,000 an option that is only available to me up until I am 55,(february) and then work somewhere less stressful and definitely for less pay but with better quality of life vis a vis stress and life pace. I was really feeling the need to slow down before the cancer. I am leaning toward the lump sum (no pun intended lol) but I have fear around cancer recurrence and being too sick to work. Also, my income would stop Feb 21 if I chose this option which is only about half way through my treatment.

I know this is my decision but I hate that Cancer has really complicated my process. I am a bit analytical and the whole Cancer thing feels like I can't think my way out of this box. Argh. Probably have some feeling to process.

By the way, my prognosis is good-excellent. Stage 1aNoMo Grade 2 Es+Pr- Her2- But I've yet to see the oncologists and don't know for sure what and how long the treatment will be. Playing the Cancer WAITING game while my retirement decision due date ticks ever forward.

Shellsatthebeach

The Candian system is different from the US. In the US the system varies a great deal from state to state. However, the bottom line is it can be a financial stress retiring early. The plus is you don't need to worry about health insurance. As you know, having cancer, this is something that is incredibly important. The second thing to consider is quality of life. High stress can take that quality away. Also, in my opinion, high stress contributes to overall poor health. I think it wears the immune system down making anyone more susceptible to illness.

Good for you considering alternatives such as taking a lump sum and a different job to get you by financially while enjoying life. Sometimes big life events, such as cancer, puts things into better perspective. Ultimately, the decision is yours to make so think about your health and quality of life. Your prognosis is very good. You have a long life ahead of you, so I see why this decision is complicated with such a short window of time to decide. I wish you luck and peace on whatever decision you make.

pajim

indahood, I think you need to talk with a Financial Planner. Someone to crunch a few numbers for you.

As I understand from what you wrote, you can (a) take disability now at 75% pay until you are better. Then you can 'retire' with $1000/mo pension and get a job that pays up to $1000/month less and be in the same [financial] situation you are now but with a much less stressful job.

Option 2 is to take the $500,000 lump sum. Out of that you have to support yourself until your treatment is over, then you can find another [less stressful] job.

Is the lump sum in lieu of a pension? (I assume so. If you get the pension as well, take the $500,000 and the pension and run)

If you take and invest that $500,000 you need $12,000 a year income from it in order to break even assuming you get a new job paying $1000/mo less. (Does the pension index with inflation?) That's about 4%, which is within most financial planners' guidelines on how much should be pulled from a retirement plan each year. Except that you won't have $500,000. How much do you need to support yourself until treatment is over?

It would be worth it to have someone figure out the scenarios for you. Then you can factor that in to your decision-making. This isn't all about money -- it's about how you want to live your life -- but once you have the $ figured out you know what you're getting into. Maybe you want to move to the country and the cost of living is less. How much less would the job you want actually pay? That matters too.

Edited to add: P.S. Good luck!

indahood

Pajim, thank you for such a thoughtful response. You are clearly a sweetheart. After careful consideration, this morning, I decide the lump sum payment, IE no pension, would be the way that I WANT to do my life. That is because before today, I had a prognosis that said Stage 1 Grade 2 surgery and radiation. I was also encouraged to be part of a clinical trial that was only 5 days of radiation treatment rather than 4 weeks. Which had me finished treatment by my Feb 21st birthday and the day that I would officially have to resign. I had finally come to a decision and felt good about it. Only one more meeting with the MO for oncotype results. The MO told me very very slight chance I would need chemo. BUT... oncotype test results, I am luminal B and a high score for distal recurrence. on top of that, he told me that he just received a review of my original pathology report and that I am stage 2, not stage 1. arghhh...

I will need Chemo, 3 more months then 6 weeks recovery and then rads and then recovery. Suddenly, giving up my disability in less than a month seems kinda foolhardy yet if I don't do it by my 55 birthday, I will lose the opportunity to take the lump sum option. Back to the drawing board.

anyway, I'm feeling sorry for myself tonight. Thanks for your thoughtful words I do appreciate them.

Laurie